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THACO investing half a billion dollars in Mazda assembly plant

Released at: 14:59, 27/03/2017

THACO investing half a billion dollars in Mazda assembly plant

The ground breaking ceremony of THACO-Mazda automobile manufacturing plant, March 26, 2017 - Photo: VGP

Quang Nam plant to produce and assemble 100,000 Mazda motor cars annually.

by Hai Van

The Truong Hai Automobile Joint Stock Company (THACO) is investing half a billion dollars to build a plant producing and assembling 100,000 Mazda motor cars each year  in Chu Lai, central Quang Nam province.

It held a breaking ground ceremony for the plant on March 26, with the attendance of Prime Minister Nguyen Xuan Phuc.

The plant has received technology transfer and technical support from Mazda Japan, according to THACO President Tran Ba Duong.

“More than 70 per cent of production at the THACO - Mazda plant is by robotics and its inspection line is linked to the technical information system of the Mazda testing center in Japan,” he added.

THACO’s move is the opposite of what is happening at many other assemblers, which are cutting production because import taxes on completely-built-unit (CBU) imports are to fall to 0 per cent shortly.

The group, he went on, decided to invest in the new plant because THACO has experience in motor car assembly as well as a stable consumption market.

“We believe that when the CBU tax rate is 0 per cent the government will also adjust import taxes on components for manufacturing and assembling motor vehicles by a corresponding amount,” he said.

Speaking at the breaking ground ceremony, Prime Minister Nguyen Xuan Phuc said he held THACO’s spectacular progress in high regard, especially its efforts in science and technology and innovation.

“The government greatly appreciates THACO’s increase in localization rates,” he said. “Motor cars are not just a commodity but a national brand.”

He also instructed leaders at the Ministry of Finance and the Ministry of Industry and Trade to study and propose policies that are in line with international practice in order to create conditions for the domestic automobile industry to develop in order to serve local and export markets.

THACO now occupies more than 40 per cent of Vietnam’s truck market, 50 per cent of the bus market, and 26 per cent of the motor car market. It produces and assembles vehicles with localization rates of over 50 per cent for buses, 30-35 per cent for trucks, and 18 per cent for motor cars.

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